Stop import of arecanut to arrest price crash, growers urge Centre

Arecanut, coconut growers and traders in the state are now looking at the Centre to arrest further crash in the price of the produces. From the last one year, the prices have been on the lower side as the import of these produces is increasing.

The growers, supported by politicians, have already petitioned to the Centre to intervene to arrest further decline in the prices. Karnataka wants the Centre to purchase at least 40,000 tonnes of arecanut under the Market Intervention Scheme.

For the Centre, it is said, the prices suggested by the state government are on the higher side. The state wants the Centre to maintain purchase price of white supari at Rs 300 a kg and red supari at Rs 400 a kg, it is learnt. This is not acceptable to the Centre.

In Sirsi, Uttara Kannada district, which is known for good quality arecanut cultivation, the price of a quintal of red arecanut has plummeted to Rs 22,000 to 24,000, while for chali or white variety, it ranges from Rs 19,000 to 21,000.

Shantaram Hegde, Chairman, Horticulture Produce Marketing Co-Operative Society, Sirsi, said, “Last year, the price of red arecanut was not less than Rs 35,000 for a quintal and for chali, it was about Rs 30,000 a quintal. Now, the prices have come down by about Rs 10,000. Farmers and traders are finding it tough.”

Hegde said the prices of these produces in domestic market will remain less till the import of arecanut is stopped. “India is allowed to import arecanut from Saarc member countries. We get arecanut from Sri Lanka. But many non-Saarc countries are routing their produce via Sri Lank. This illegality has to be prevented to stop glut in the market which has led to steep fall in the prices. It is not consumers, but Gutka manufacturing companies in the north which are benefited,” he remarked.

The prices of coconut and copra have also plummeted. A quintal of copra costs around Rs 7,000 in Tiptur market, while it was Rs 16,000 to Rs 19,000 a year ago.

Nawabjan, a coconut shell trader in Tiptur, said, “I am into coconut shell charcoal business from many years. I used to sell 500 tonnes in a year. Now, the demand has come down to 200 tonnes. A lot of charcoal is coming to India from Indonesia via Sri Lanka. Last year, the rate was Rs 9,300 per tonne and now it is Rs 5,000. There is no demand for the product. The prices may go down further.”

He said Tiptur coconut market, which used to be hyper active, now has hardly any business. As long as the import is allowed, the prices of coconut and its byproducts would continue to remain low, he added.